Real estate transaction costs — brokerage, stamp duty, registration charges — are typically higher relative to asset value than for more liquid investments, which means shorter holding periods need to generate more appreciation just to offset these costs.
Longer holding periods generally allow more time for both rental income to accumulate and location fundamentals to mature, which is one reason real estate is often considered a longer-horizon investment relative to more liquid asset classes.
Before investing, it is worth honestly estimating your likely holding period and choosing a property and location whose characteristics align with that timeframe.
